This weeks most viewed Trulia Voices thread comes from who is a Home Buyer from New Mexico - Offer Rejected Due to Hurt Feelings?
Anita wanted to place an offer on a home but her agent said they would not present the offer because it was too low. The agent said, “The broker/owner “… won’t allow her agents to write up extremely low offers (even in a buyer’s market) because most homes on the market will still reflect the current value. Really low offers (more than about 20%) will just cause bad feelings between buyer and seller and among the other realtors.”
There have been 35 answers thus far. Lets see what our real estate community had to say.
Feedback from our Trulia Voices Real Estate Community
The first real estate agent to answer was Jim Mellen from Liz Moore and Associates in Williamsburg, Virginia and said, “Realtors have a Code of Ethics and while all 17 articles are equally important, your agent may be in violation of several here. You might want to make sure you have all the facts and if this is really what is going on I would seek out a better agent and company. We do have to treat all parties honestly, but the agents allegiance/loyalty belongs with the client. A company may have procedural policies, but they will not conflict with the Code of Ethics.
Most likely your agent has seen many low offers come and go and is really trying to give you good advice. They must present all offers and counter offers without prejudice and in a timely manner. The receiving agent must also present the offers to the seller without prejudice. This call be done verbally, but written offers-even low ones are a much better way to go to protect everyone.”
Real Estate agent Brittany Simonelli from Revealty in Columbus, Ohio says, “OMG! I cannot believe what I am reading! Terminate your agreement asap and find another agent that will go to bat for you. I find it hard to believe their company has any such policy regarding offers and the amount you must pay. It sounds like your agent knew the offer would not fly and did not want to waste time.”
Real estate agent Scott Godzyk from Godzyk Realty Group in New Hampshire said, “A listing agent has a duty to present all offers to the seller no matter what they are unless the seller has signed a written request that no offers be submitted under a price or percentage. Now your offer of 2/3 of asking price is way to low, even offering half off a listing price is way to low.”
Tristan Celayeta is a real estate agent with Frank Howard Allan Realtors in Belvedere, California who said, “Whoops, I just crafted an answer then Jim took the wind from my sails. The only two-bits I’ve got is that one MUST view multiple properties and learn local value. Then your offers are most educated with the best chance of acceptance.
Remember that agents and sellers are all over the board when pricing. Only local knowledge will reveal best values.”
Kristen Noll is a real estate agent with the First Weber Group in Milwaukee, Wisconsin and said, “First of all, for an agent not to present any and all offers is pure idiocy. How do they know what the sellers will take? I just had a seller accept $282k on a property he insisted on pricing at $315k so he could net “no less than $287k.” So, you CANNOT, as an agent, assume what the seller will be insulted by. Plus, it’s all in how you present the offer. If you go to the seller and say, “Look at this ridiculous offer!” of course he’ll take that as a cue to be insulted. If you say, “Hey, at least we HAVE an offer and have something to work with” then you keep the lines of communication open. That’s why were are supposed to be the professionals!”
Anita followed up and said,“….And I so appreciate all those who have “checked” the YES box of my sanity questioner.
You’re a great resource. I can’t thank you all enough……”
My Thoughts
Anita brings up some interesting points. Naturally, all home buyers are looking for a good deal. Some homes may be overpriced, some at market and some below market value. A local experienced real estate agent has the knowledge, data and experience to help guide a home buyer to making the most informed and well prepared offer.
That being said, I see both sides of the coin. I’ve always been of the opinion that agents should present all offers the seller. The key here is to educate the buyer as to what the comparable active, pending and sold properties are. This will help the agent and seller come up with a good offer strategy. Then, it’s crucial to present the terms of the deal in their best light as well. A lower offer with better terms may be a winning combination. Nevertheless, I see the agents point too because they have a reputation in the business to uphold and presenting a low-ball offer may not be how they want to be portrayed.
Anyone can make an offer. But knowing how to come up with a winning price range, the best terms and how to negotiate takes skill and experience. Having an agent on your side that is proficient in each one is priceless.
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January 16th, 2009 at 10:23 am
Wow, what a story. I want to put my two cents in, if you don’t mind. If a buyer is working with an agent who represents her, the agent owes fiduciary duty to that client, like a doctor or a lawyer would. The agent must obey the clients lawful commands. Writting up an offer of the buyer no matter how unrealistcally low is the buyeragent’s job. On the other hand a true buyer agent would do research to find out how much the prooperty is worth and educate her client on the best negotiating strategy. Do your research before you buy, Google buyer agency and feel free to visit my site http://www.hometeamadvantedge.com. I specialize in buyer agency and although don’t work in your area, would be happy to give you free advice.